Question

In: Accounting

Adjusting entries – deferrals: The ledger of Comfort realty on March 31, 2018 includes following selected...

  1. Adjusting entries – deferrals: The ledger of Comfort realty on March 31, 2018 includes following selected accounts before the adjusting entries.

Debit

Credit

Prepaid Insurance

3,600

Office supplies

2,800

Office equipment

25,000

Accumulated Depreciation – office equipment

5,000

Unearned revenue

9,200

An analysis of the account shows the following:

  1. Insurance expires at rate of $100 per month
  2. Supplies on hand total $800
  3. The office equipment depreciates $200 per month
  4. One-half of the unearned revenue was earned in March

Prepare the adjusting entries for the month of March.

Solutions

Expert Solution

a)insurance expense=100*12=1200
insurance expense(db)1200
prepaid insurance(cr)1200
b)supplies in hand=800 so suplies used=2800-800=2000
supplies expense(db)2000
supplies(Cr)2000
c)depreciaiton expense=200*12=2400
depreciation expense(db)2400
accumulated depreciation -off equip (cr)2400
d)unearned revenue(db)9200/2=4600
service revenue(cr)4600

ekkarill92 answered 2 years ago
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